By Aaron McLeod, Director
Labour, known for its bold statements on business rate reforms whilst in opposition, is gearing up for an impact with its first Autumn Budget Statement on October 30.
And given Labour’s manifesto statements around ‘fundamentally reforming business rates’ it will be very interesting to see what they have in store for businesses and the economy.
Whilst we don’t know that business rates will be on Rachel Reeves’ agenda, it is safe to say that businesses across the country still see it as a priority ahead of the new 25/26 financial year. Government lobbying is currently in full swing with the likes of UK Hospitality and British Retail Consortium all weighing in with their own business rate reform wish lists.
We can hope that Labour will unveil concrete details on how they plan to fundamentally reform the business rates’ structure, it is perhaps more likely we will see minor tinkering across the current retail relief scheme and the odd lifeline for the retail or hospitality sectors.
But with only three weeks to go to Budget Day, as a minimum, I would like to see:
- Confirmation of adjustments to the small business multiplier and standard multiplier, both pivotal components that directly impact British businesses of all sizes.
- Actual details on the “fundamental reform” they promised in their election manifesto, in addition to their longer-term plans around business rates. After all, they have had 14 years in opposition to get their thinking caps on.
- Confirmation of any changes to the current retail relief scheme. This will be crucial as many businesses in the retail sector continue to depend on this in challenging times for high streets up and down the country.
- Further clarity around the General Anti Avoidance Rule (GAAR) business rates consultation period. This was announced by the previous government in the Spring statement this year but there is still speculation if it will go ahead. The GAAR was seeking to provide local and central government with greater ability to tackle business rates avoidance and review new threats and avoidance schemes as they emerge.
As we count down to October 30, we can be optimistic and hope for some radical solutions to be unveiled, or we may be lamenting yet another missed opportunity for a new government to show they do mean business when it comes to business rates.
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